Media Mythbusters comments on AP’s Bogus Ammo Shortage Story:
Reality, however, shows that the assumptions made and biases held by the Associated Press reporters may have led the story to having been built on an entirely faulty premise.

To understand the ammunition shortage being experienced by some police agencies today, we shouldn’t look at September 11, 2001, but instead, begin with February 28, 1997.

It was on that day in North Hollywood, California that Larry Phillips, Jr. and Emil Matasareanu, two-heavily armed and armored bank robbers, engaged in a 44-minute shootout with an out-gunned Los Angeles Police Department. The two suspects fired more than 1,300 rounds of ammunition, and each was shot multiple times with police handguns. the 9mm police pistol bullets bounced off their homemade body armor. Phillips eventually died after being shot 11 times; Matasareanu died after being hit 29 times.

In the aftermath of the shootout, the LAPD, followed by police departments large and small nationwide, began to feel that rank-and-file patrol officers should be armed with semi-automatic or fully-automatic assault rifles or submachine guns in addition to their traditional sidearms, anticipating an up-tick of heavily armed and armored subjects. The trend has failed to materialize more than a decade later.

As with most trends in law enforcement, the trend towards the militarization of police patrol officers to a level once reserved for SWAT/ERT teams was slow, though one that gathered momentum rapidly after September 11, 2001.

Today, it is this increased and on-going militarization of police forces and the associated training requirements that have caused the ammunition shortages experienced by some police departments, and the lack of ammunition is not related to the wars in Afghanistan and Iraq in any meaningful way.

The Associated Press report is not supported beyond anecdotal evidence by real, objective facts.
Lots more details at the link.

In a nutshell, the ammo shortage is not because of international conflicts.  It is because of the increased militarization of domestic police forces.